DaVita Inc (DVA, Financial), a leading player in the Healthcare Providers & Services industry, is currently trading at $115.08 with a market capitalization of $10.51 billion. The stock has seen a gain of 5.76% today and a 10.26% increase over the past four weeks. In this article, we will delve into the company's GF Score and its implications for future performance.
DaVita Inc's GF Score Analysis
DaVita Inc's GF Score stands at 89 out of 100, indicating good outperformance potential. The GF Score is a stock performance ranking system developed by GuruFocus, which is closely correlated to the long-term performances of stocks. It takes into account five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. A higher GF Score generally suggests higher returns. 
Financial Strength Analysis
DaVita Inc's Financial Strength Rank is 3 out of 10. This rank measures the robustness of a company's financial situation. DaVita's interest coverage stands at 3.11, indicating its ability to cover interest expenses with operating profits. However, its debt to revenue ratio of 0.98 and Altman Z score of 1.44 suggest a high debt burden and potential bankruptcy risk.
Profitability Rank Analysis
The company's Profitability Rank is 9 out of 10, reflecting its strong profitability. DaVita's operating margin is 10.73%, and its Piotroski F-Score is 6, indicating a healthy financial situation. The company has shown consistent profitability over the past 10 years, despite a slight downtrend in the operating margin over the past five years.
Growth Rank Analysis
DaVita Inc's Growth Rank is 9 out of 10, indicating strong growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 16.80%, and its 3-year revenue growth rate is 17.80%. Its 5-year EBITDA growth rate is also impressive at 13.10%.
GF Value Rank Analysis
The company's GF Value Rank is 7 out of 10, suggesting that the stock is fairly valued. The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
DaVita Inc's Momentum Rank is 9 out of 10, indicating strong price momentum. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitive Analysis
When compared to its main competitors in the same industry, DaVita Inc holds its ground. Universal Health Services Inc (UHS, Financial) has a GF Score of 95, Chemed Corp (CHE, Financial) has a GF Score of 93, and Agilon Health Inc (AGL, Financial) has a GF Score of 19. For more details on DaVita Inc's competitors, visit our competitors page.
In conclusion, DaVita Inc's high GF Score, strong profitability, and impressive growth make it a promising investment. However, investors should be cautious of its high debt burden and potential bankruptcy risk.
